Evolutionary targeting for inclusive development
Abstract Many studies articulate a theoretical conceptual change—that is, a change from neo-classical economics and “Picking Winners” policy frameworks to a systemic-evolutionary targeting framework. Within such an intellectual context, this paper attempts to expand the evolutionary targeting framework to facilitate the process of inclusive industrial development. We present a unitary industrial development trajectory which is used as a narrative to articulate the evolutionary paths of Taiwan and Malaysia in making their respective sectoral changes (from informal to formal, and then to high technology sectors) endogenous. Building on both cases, we elucidate how the organization of subsistence farming contributes to development, and hence paves the way for new industrial takeoff. In this regard, the targeting programs that focus on the Schumpeterian segment are improved upon to offer support for (re)organization of the informal sector. This study, therefore, proposes a new analytical grid theorizing the current observations in inclusive development studies. It thus explicitly acknowledges the importance of transforming the informal sector to achieve inclusive development.
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Volume (Year): 26 (2016)
Issue (Month): 2 (May)
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